Dollar Shave Club and Honest Co. Run Super Bowl Ads

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Online retailers Dollar Shave Club and Honest Co. ran their first Super Bowl advertisements on Sunday, signifying a major push to expand each company’s brand.

The Super Bowl commercials come as both companies aim to be better known among consumers and perhaps retail investors. Dollar Shave Club is eyeing an initial public offering of its stock, merger or sale of its business this year, a source close to the company said to the Business Journal. Honest Co. is in talks for an initial public offering too, according to sources cited by Bloomberg last week.

Brands paid up to $5 million for 30-second TV advertising spots in Super Bowl 50. It was estimated that 112 million people watched the big game. Super Bowl commercials offer a chance for both companies to sell more consumer goods to audiences that are hard to reach elsewhere.

“Reaching males at scale, particularly the 18 to 35 segment, is a challenge for most brands,” said Nick Fairbairn, Dollar Shave Club vice president of brand marketing. “Live sports, and specifically the Super Bowl, are a great way for us to reach this light TV viewer.”

What’s more, Super Bowl commercials many offer a way for the two companies to informally introduce themselves to potential retail investors.

Dollar Shave Club has grown rapidly since its founding in 2012. It reported revenue of $64 million in 2014, up from $19 million the year earlier, and estimated its sales would be $140 million last year. Dollar Shave Club’s public revenue disclosures contrast with most private companies who prefer to keep their financial figures secret.

“There’s a lot of M&A interest and there is a lot of IPO interest,” one person close to Dollar Shave Club said to the Business Journal in November.

Non-toxic household goods e-retailer Honest Co. also has grown rapidly since its founding in 2011 and has been discussing an initial public offering of its stock with representatives from Goldman Sachs Group Inc. and Morgan Stanley, according to a report from Bloomberg. Honest Co. Chief Executive Brian Lee has talked about taking his company public for several years, but last week was the first indication that an IPO was approaching.

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